Record Q1 2026 at Smithfield Foods (Nasdaq: SFD) with outlook reaffirmed
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Smithfield Foods reported record first‑quarter fiscal 2026 results, with net sales of $3.8 billion, up 0.8% year over year. Operating profit rose to $333 million, a 3.4% increase, driving a consolidated operating margin of 8.7%, up from 8.5%.
Net income attributable to Smithfield grew to $246 million, or $0.62 diluted EPS, while adjusted diluted EPS reached $0.64, compared with $0.57 and $0.58 in the prior‑year quarter. Packaged Meats delivered operating profit of $275 million, though its margin eased to 12.8% from 13.1%.
The company ended the quarter with $3,683 million of available liquidity, including $1,386 million in cash and a net debt to adjusted EBITDA ratio of 0.4x. The board declared a quarterly dividend of $0.3125 per share, implying an annual rate of $1.25, and management reaffirmed its fiscal 2026 outlook, including low‑single‑digit sales growth and adjusted operating profit of $1,325–$1,475 million.
Positive
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Negative
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Insights
Record Q1, modest growth, strong balance sheet, outlook reaffirmed.
Smithfield Foods delivered record first‑quarter earnings with net sales of $3.8 billion, up 0.8%, and operating profit of $333 million, up 3.4%. Margins improved slightly, with consolidated operating margin at 8.7% and adjusted operating margin at 8.9%.
Diluted EPS increased to $0.62, with adjusted diluted EPS of $0.64 versus $0.58 a year earlier. Segment data show continuing strength in Packaged Meats, where operating profit reached $275 million, even as its margin dipped from 13.1% to 12.8%.
The balance sheet appears conservative, with $3,683 million of available liquidity and a net debt to adjusted EBITDA ratio of 0.4x as of March 29, 2026. The company reaffirmed its fiscal 2026 outlook, targeting low‑single‑digit sales growth, total adjusted operating profit of $1,325–$1,475 million, capital expenditures of $350–$450 million, and an effective tax rate of 22.5%–24.5%, while maintaining an indicated annual dividend of $1.25 per share.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net sales: $3.8 billion
Operating profit: $333 million
Net income attributable to Smithfield: $246 million
+5 more
8 metrics
Net sales
$3.8 billion
Three months ended March 29, 2026; up 0.8% year over year
Operating profit
$333 million
Q1 2026; up 3.4% from Q1 2025
Net income attributable to Smithfield
$246 million
Q1 2026 vs $224 million in Q1 2025
Diluted EPS
$0.62 per share
Three months ended March 29, 2026
Adjusted diluted EPS
$0.64 per share
Q1 2026 vs $0.58 in Q1 2025
Available liquidity
$3,683 million
As of March 29, 2026, including $1,386 million in cash
Net debt to adjusted EBITDA
0.4x
Trailing twelve months ended March 29, 2026
Total adjusted operating profit outlook
$1,325–$1,475 million
Fiscal year 2026 guidance reaffirmed
Key Terms
Adjusted EBITDA, Adjusted operating profit margin, Net debt, Non-GAAP financial measures, +1 more
5 terms
Adjusted EBITDA financial
"The following table provides a reconciliation of net income to EBITDA and adjusted EBITDA."
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Adjusted operating profit margin financial
"Adjusted operating profit margin is adjusted operating profit expressed as a percentage of sales."
Adjusted operating profit margin measures the share of each dollar of sales a company keeps from its core business after removing the effects of one-time or non-recurring items (for example, unusual charges or gains). It matters to investors because it shows the underlying efficiency and profitability of ongoing operations—like checking a car’s fuel efficiency after excluding rare detours—making results easier to compare across periods and companies.
Net debt financial
"Net debt is defined as long-term debt and finance lease obligations, including the current portion, minus cash and cash equivalents."
Net debt is the total amount a company owes after subtracting the cash and assets it has that can be used to pay off that debt. It shows how much debt is truly a burden, helping investors understand if a company is financially healthy or heavily borrowed. Think of it like calculating how much money you owe after using your savings to pay part of it.
Non-GAAP financial measures financial
"This press release includes certain financial information that is not presented in accordance with generally accepted accounting principles in the United States (“GAAP”)."
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Hog Production Reform financial
"Consists of contract termination costs, loss on asset disposals, employee termination benefits and other exit costs associated with our Hog Production Reform initiative."
Earnings Snapshot
Net sales: $3.8 billion · Guidance included
Q1 2026
Net sales
$3.8 billion
+0.8% YoY
Operating profit
$333 million
+3.4% YoY
Net income attributable to Smithfield
$246 million
Diluted EPS
$0.62
Adjusted diluted EPS
$0.64
Adjusted EBITDA
$417 million
Guidance
For fiscal 2026, Smithfield expects low-single-digit sales growth versus 2025, total adjusted operating profit of $1,325–$1,475 million, capital expenditures of $350–$450 million, and an effective tax rate between 22.5% and 24.5%.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 28, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (757 ) 365-3000
N/A
(Former name, or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company | ||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition
On April 28, 2026, Smithfield Foods, Inc. issued a press release announcing results of operations for its first quarter ended March 29, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information in the preceding paragraph, as well as Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. It may only be incorporated by reference into another filing under the Exchange Act or the Securities Act of 1933, as amended, if such subsequent filing specifically references this Current Report on Form 8-K.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
| Exhibit Index | ||||||||||||||
| Exhibit Number | Exhibit Description | |||||||||||||
| 99.1 | Press release, dated April 28, 2026, announcing the results of operations of Smithfield Foods, Inc. for its first quarter ended March 29, 2026. | |||||||||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| SMITHFIELD FOODS, INC. | ||||||||
| Date: April 28, 2026 | By: | /s/ Mark L. Hall | ||||||
| Mark L. Hall | ||||||||
| Chief Financial Officer | ||||||||
Smithfield Foods Reports Record First Quarter Fiscal 2026 Results
•Disciplined Execution on Clear Strategic Priorities Drives Profitable Growth in a Dynamic Operating Environment
•Strong Balance Sheet and Cash Flows Support Investments in Long-Term Growth and Shareholder Value Creation
SMITHFIELD, Va., April 28, 2026 -- Smithfield Foods, Inc. (Nasdaq: SFD), an American food company and an industry leader in value-added packaged meats and fresh pork, today reported results for its fiscal 2026 first quarter ended March 29, 2026.
First Quarter Fiscal 2026 Financial Highlights
•Net sales of $3.8 billion, up 0.8% from the first quarter of 2025
•Operating profit of $333 million, up 3.4% from the first quarter of 2025; Adjusted operating profit of $339 million, up 4.0% from the first quarter of 2025
•Operating margin of 8.7%, up from 8.5% in the first quarter of 2025; Adjusted operating margin of 8.9%, up from 8.6% in the first quarter of 2025
•Packaged Meats operating profit of $275 million, up 3.6% from the first quarter of 2025; Packaged Meats operating profit margin of 12.8%, compared to 13.1% in the first quarter of 2025
•Diluted and adjusted diluted earnings of $0.62 and $0.64 per share, respectively; compared to $0.57 and $0.58 per share, respectively, in the first quarter of 2025
CEO Perspective
“We delivered record first‑quarter results through disciplined execution across the business, led by strong performance in Packaged Meats,” said Smithfield President and CEO Shane Smith. “Adjusted operating profit reached a first‑quarter record, underscoring the strength of our vertically integrated model. This performance reflects the actions our team is taking to drive profitable growth while navigating a dynamic operating environment.”
Smith added, “We are actively managing inflationary input costs and consumer spending trends, and our record first‑quarter results support our confidence in our outlook for 2026. Our strong balance sheet and cash flow generation give us the flexibility to invest behind our strategic priorities and continue driving profitable growth and long‑term shareholder value.”
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Review of Financial Results
Results of Operations
Sales
| Three Months Ended | |||||||||||||||||||||||
| March 29, 2026 | March 30, 2025 | $ Change | % Change | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Sales by segment: | |||||||||||||||||||||||
| Packaged Meats | $ | 2,149 | $ | 2,024 | $ | 125 | 6.2 | % | |||||||||||||||
| Fresh Pork | 2,012 | 2,033 | (21) | (1.1) | % | ||||||||||||||||||
| Hog Production | 769 | 932 | (163) | (17.5) | % | ||||||||||||||||||
| Other | 174 | 104 | 70 | 66.9 | % | ||||||||||||||||||
| Total segment sales | 5,103 | 5,093 | 10 | 0.2 | % | ||||||||||||||||||
Inter-segment sales eliminations: | |||||||||||||||||||||||
Fresh Pork | (784) | (787) | 3 | (0.4) | % | ||||||||||||||||||
Hog Production | (519) | (535) | 16 | (3.1) | % | ||||||||||||||||||
| Total inter-segment sales eliminations | (1,303) | (1,322) | 19 | (1.5) | % | ||||||||||||||||||
| Consolidated sales | $ | 3,800 | $ | 3,771 | $ | 29 | 0.8 | % | |||||||||||||||
Operating Profit (Loss) and Operating Profit Margin by Segment
| Three Months Ended | |||||||||||||||||||||||
| March 29, 2026 | March 30, 2025 | Change | % Change | ||||||||||||||||||||
| (in millions, except percentages and basis points) | |||||||||||||||||||||||
| Operating profit: | |||||||||||||||||||||||
| Packaged Meats | $ | 275 | $ | 266 | $ | 9 | 3.6 | % | |||||||||||||||
| Fresh Pork | 78 | 82 | (4) | (4.3) | % | ||||||||||||||||||
| Hog Production | 4 | 1 | 3 | 282.6 | % | ||||||||||||||||||
| Other | 12 | 14 | (3) | (18.4) | % | ||||||||||||||||||
| Corporate expenses | (26) | (29) | 3 | 11.0 | % | ||||||||||||||||||
Unallocated (1) | (10) | (12) | 2 | 13.2 | % | ||||||||||||||||||
| Operating profit | $ | 333 | $ | 321 | $ | 11 | 3.4 | % | |||||||||||||||
| Operating profit margin: | |||||||||||||||||||||||
| Packaged Meats | 12.8 | % | 13.1 | % | (32) | bps | |||||||||||||||||
| Fresh Pork | 3.9 | % | 4.0 | % | (13) | bps | |||||||||||||||||
| Hog Production | 0.5 | % | 0.1 | % | 41 | bps | |||||||||||||||||
| Other | 6.7 | % | 13.7 | % | (700) | bps | |||||||||||||||||
| Consolidated | 8.7 | % | 8.5 | % | 22 | bps | |||||||||||||||||
________________
(1) We do not allocate certain items to our operating segments such as litigation charges, exit and disposal costs, insurance recoveries, gains and losses on the sale of property, plant and equipment and other assets, accelerated depreciation, and employee termination benefits, among others.
2
Financial Position
As of March 29, 2026, we had $3,683 million of available liquidity consisting of $1,386 million in cash and cash equivalents and $2,298 million of availability under our committed credit facilities. We ended the quarter with a ratio of net debt to adjusted EBITDA(1) on a trailing twelve months basis of 0.4x.
________________
(1)A non-GAAP measure. Please see the table in the Non-GAAP Financial Measures section for a reconciliation of the ratio of net debt to adjusted EBITDA to the most comparable GAAP measure.
Dividend Update
On March 23, 2026, our Board declared a quarterly cash dividend of $0.3125 per share of common stock, which was paid on April 21, 2026, to shareholders of record on April 7, 2026. We anticipate the remaining quarterly dividends in fiscal year 2026 will be unchanged, resulting in an annual dividend rate of $1.25 per share. The declaration of dividends is subject to the discretion of our Board and depends on various factors, including our net income, financial condition, cash requirements, business prospects, and other factors that our Board deems relevant to its analysis and decision making.
FY 2026 Outlook
The Company is reaffirming its financial outlook provided on March 24, 2026 as follows:
•Total Company sales to be up low-single-digits compared to fiscal year 2025.
•Packaged Meats segment adjusted operating profit of between $1,100 million to $1,200 million.
•Fresh Pork segment adjusted operating profit of between $200 million to $260 million.
•Hog Production segment adjusted operating profit of between $150 million to $200 million.
•Total Company adjusted operating profit of between $1,325 million to $1,475 million.
•Capital expenditures of between $350 million to $450 million. Capital expenditures include investments in profit improvement projects as well as projects for maintenance and repair.
•An effective tax rate of between 22.5% and 24.5%.
The Company’s outlook for 2026 includes 53 weeks of results. The outlook excludes the impact of the proposed Nathan’s Famous acquisition and investment in the new processing facility in Sioux Falls, South Dakota.
Conference Call Information
A conference call to discuss the fiscal first quarter financial results is scheduled for today, April 28, 2026, at 9:00 a.m. Eastern Time. A live audio webcast of the conference call, together with related materials, will be available online at investors.smithfieldfoods.com or by dialing 844-539-3338 (international callers please dial 412-652-1269).
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A recorded replay of the conference call is expected to be available approximately three hours after the conclusion of the call and can be accessed both online at investors.smithfieldfoods.com and by dialing 855-669-9658 (international callers please dial 412-317-0088). The pin number to access the telephone replay is 9363914. The replay will be available until May 5, 2026. For more information, please visit investors.smithfieldfoods.com.
About Smithfield Foods
Smithfield Foods, Inc. (Nasdaq: SFD) is an American food company with a leading position in packaged meats and fresh pork products. With a diverse brand portfolio and strong relationships with U.S. farmers and customers, we responsibly meet demand for quality protein around the world. For more information, please visit investors.smithfieldfoods.com
Non-GAAP Financial Measures
This press release includes certain financial information that is not presented in accordance with generally accepted accounting principles in the United States (“GAAP”), including (1) adjusted net income attributable to Smithfield, (2) adjusted net income per diluted common share attributable to Smithfield, (3) EBITDA, (4) adjusted EBITDA, (5) adjusted EBITDA margin, (6) adjusted operating profit, (7) adjusted operating profit margin, (8) net debt and (9) ratio of net debt to adjusted EBITDA. We refer to these measures as “non-GAAP” financial measures.
(1) Adjusted net income attributable to Smithfield is defined as net income, excluding the effects of transactions or events that are not part of our core business activities or are unusual in nature (whether gains or losses) and the tax effects of the foregoing items. We believe that adjusted net income attributable to Smithfield is a useful measure because it excludes the effects of items that are unusual in nature, infrequent in occurrence or otherwise stem from strategic decisions to restructure our operations. (2) Adjusted net income per diluted common share attributable to Smithfield is defined as adjusted net income attributable to Smithfield divided by diluted weighted average shares outstanding. (3) EBITDA is defined as earnings before interest, taxes, depreciation and amortization. We believe that EBITDA is a useful measure because it excludes the effects of financing and investing activities by eliminating interest and depreciation costs to provide a comparable year-over-year analysis. (4) Adjusted EBITDA is defined as EBITDA further adjusted for the effects of items that are unusual in nature, infrequent in occurrence or otherwise stem from strategic decisions to restructure our operations. We believe that adjusted EBITDA is a useful measure because it excludes the effects of items that are unusual in nature, infrequent in occurrence or otherwise stem from strategic decisions to restructure our operations. (5) Adjusted EBITDA margin is defined as adjusted EBITDA divided by total sales. We believe that adjusted EBITDA margin is a useful measure because it evaluates overall operating performance, ability to pursue and service possible debt opportunities and possible future investment opportunities. (6) Adjusted operating profit is defined as operating profit, excluding the effects of items that are unusual in nature, infrequent in occurrence or otherwise stem from strategic decisions to restructure our operations. (7) Adjusted operating profit margin is adjusted operating profit expressed as a percentage of sales. We believe that adjusted net income per diluted common share attributable to Smithfield, adjusted operating profit and adjusted operating profit margin provide a better understanding of underlying operating results and trends of established, ongoing operations of our business. (8) Net debt is defined as long-term debt and finance lease obligations, including the current portion, minus cash and cash equivalents. We believe that net debt is a useful measure because it helps to give investors a clear understanding of our financial position and is also used to calculate certain leverage ratios. (9) Ratio of net debt to adjusted EBITDA is defined as net debt divided by adjusted EBITDA. We believe that ratio of net debt to adjusted EBITDA is a useful measure because it monitors the sustainability of our debt levels and our ability to take on additional debt against adjusted EBITDA, which is used as an operating performance measure.
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Although these non-GAAP measures are frequently used by investors and securities analysts in their evaluations of companies in industries similar to ours, these non-GAAP measures have limitations as analytical tools, are not measurements of our performance under GAAP and should not be considered as alternatives to operating profit, net income or any other performance measures derived in accordance with GAAP and should not be used by investors or other users of our financial statements in isolation for formulating decisions, as such non-GAAP measures exclude a number of important cash and non-cash charges.
You should be aware that our presentation of these and other non-GAAP financial measures in this press release may not be comparable to similarly titled measures used by other companies. A reconciliation of each of these non-GAAP measures to its most directly comparable financial measure calculated in accordance with GAAP is provided in this release.
The Company’s outlook for fiscal year 2026 includes adjusted operating profit and adjusted segment operating profit. The Company is not able to reconcile its fiscal year 2026 projected adjusted results to its fiscal year 2026 projected GAAP results because certain information necessary to calculate such measures on a GAAP basis is unavailable or dependent on the timing of future events outside of our control. Therefore, because of the uncertainty and variability of the nature of and the amount of any potential applicable future adjustments, which could be significant, the Company is unable to provide a reconciliation for these forward-looking non-GAAP measures without unreasonable effort.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this press release, including statements regarding our strategy, future financial condition, future operations, projected costs, prospects, plans, objectives of management, and expected market growth, are forward- looking statements. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “shall,” “should,” “expects,” “plans,” “anticipates,” “intends,” “projects,” “contemplates,” “believes,” or “estimates” or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Specific forward-looking statements in this press release include our financial outlook for 2026, our ability to drive multi-year growth, our ability to complete the acquisition of Nathan’s Famous and, upon completion, deliver earnings growth for shareholders, and the anticipated dividend payments of $1.25 per share in 2026.
We have based the forward-looking statements contained in this press release primarily on our current expectations, estimates, forecasts and projections about future events and trends that we believe may affect our business, results of operations, financial condition and prospects. Although we believe that we have a reasonable basis for each forward-looking statement contained in this press release, the results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements. We undertake no duty to update any statement made in this press release in light of new information or future events.
The forward-looking statements contained in this press release are subject to substantial risks and uncertainties that could affect our current expectations and our actual results, including, among others: (1) the cyclical nature of our operations and fluctuations in commodity prices; (2) our dependence on third- party suppliers; (3) our ability to execute on our strategy to optimize the size of our hog production operations; (4) our ability to navigate geopolitical risks including increased tariffs on our exports, (5) our ability to mitigate higher input costs through productivity improvements in our operations, procurement
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strategies and the use of derivative instruments; (6) our ability to compete successfully in the food industry; (7) our ability to anticipate and meet consumer trends and interests through product innovation; (8) compliance with laws and regulations, including environmental, cybersecurity and tax laws and regulations in the United States and Mexico; (9) our ability to defend litigation brought against us and the sufficiency of our accruals for related contingent losses; (10) our ability to prevent cyberattacks, security breaches or other disruptions of our information technology systems; (11) future investments in our business, our anticipated capital expenditures and our estimates regarding our capital requirements; (12) our dividend policy and our ability to pay dividends; and (13) our status as a “controlled company” and any resulting potential conflicts of interest. A detailed discussion of these factors and other risks that affect our business is contained in our SEC filings, including our reports on Form 10-K and Form 10-Q, particularly under the heading “Risk Factors.” Copies of these filings are available online from the SEC or by contacting Smithfield’s Investor Relations Department at ir@smithfield.com or by clicking on SEC Filings on the Smithfield Investor Relations website at investors.smithfieldfoods.com.
Investor Contact:
Julie MacMedan
Email: ir@smithfield.com
Media Contact:
Ray Atkinson
Email: ratkinson@smithfield.com
Cell: 757.576.1383
(Financial Tables Follow)
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SMITHFIELD FOODS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in millions, except share data and per share data, and unaudited)
| Three Months Ended | |||||||||||
| March 29, 2026 | March 30, 2025 | ||||||||||
| Sales | $ | 3,800 | $ | 3,771 | |||||||
| Cost of sales | 3,289 | 3,262 | |||||||||
| Gross profit | 511 | 510 | |||||||||
| Selling, general and administrative expenses | 180 | 197 | |||||||||
| Operating gains | (1) | (9) | |||||||||
| Operating profit | 333 | 321 | |||||||||
| Interest expense, net | 8 | 11 | |||||||||
| Non-operating losses | 1 | 6 | |||||||||
| Income before income taxes | 323 | 304 | |||||||||
| Income tax expense | 72 | 72 | |||||||||
| Loss from equity method investments | 2 | 5 | |||||||||
| Net Income | 249 | 227 | |||||||||
| Net income attributable to noncontrolling interests | 4 | 4 | |||||||||
| Net income attributable to Smithfield | $ | 246 | $ | 224 | |||||||
| Net income per common share attributable to Smithfield: | |||||||||||
| Basic | $ | 0.63 | $ | 0.57 | |||||||
| Diluted | 0.62 | 0.57 | |||||||||
| Weighted-average shares outstanding: | |||||||||||
| Basic | 393,285,796 | 388,812,663 | |||||||||
| Diluted | 394,670,922 | 389,064,212 | |||||||||
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SMITHFIELD FOODS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, except share data, and unaudited)
| March 29, 2026 | December 28, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 1,386 | $ | 1,539 | |||||||
| Accounts receivable, net | 1,066 | 1,023 | |||||||||
| Inventories, net | 2,348 | 2,328 | |||||||||
| Prepaid expenses and other current assets | 232 | 276 | |||||||||
| Total current assets | 5,031 | 5,166 | |||||||||
| Property, plant and equipment, net | 3,205 | 3,226 | |||||||||
| Goodwill | 1,622 | 1,623 | |||||||||
| Intangible assets, net | 1,258 | 1,260 | |||||||||
| Operating lease assets | 380 | 387 | |||||||||
| Equity method investments | 209 | 209 | |||||||||
| Other assets | 297 | 306 | |||||||||
| Total assets | $ | 12,002 | $ | 12,177 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 489 | $ | 856 | |||||||
| Current portion of long-term debt and finance lease obligations | 602 | 3 | |||||||||
| Current portion of operating lease obligations | 73 | 71 | |||||||||
| Accrued expenses and other current liabilities | 922 | 811 | |||||||||
| Total current liabilities | 2,086 | 1,741 | |||||||||
| Long-term debt and finance lease obligations | 1,401 | 2,000 | |||||||||
| Long-term operating lease obligations | 313 | 322 | |||||||||
| Deferred income taxes, net | 638 | 658 | |||||||||
| Net long-term pension obligation | 209 | 207 | |||||||||
| Other liabilities | 180 | 185 | |||||||||
| Redeemable noncontrolling interests | 311 | 264 | |||||||||
| Commitments and contingencies | |||||||||||
| Equity: | |||||||||||
| Shareholders’ equity: | |||||||||||
Preferred stock, no par value; 100,000,000 shares authorized; no shares issued and outstanding | — | — | |||||||||
Common stock, no par value; 5,000,000,000 shares authorized; 393,477,263 shares issued and outstanding as of March 29, 2026 and 393,112,711 shares issued and outstanding as of December 28, 2025 | — | — | |||||||||
| Additional paid-in capital | 3,292 | 3,338 | |||||||||
| Retained earnings | 3,897 | 3,776 | |||||||||
| Accumulated other comprehensive loss | (325) | (314) | |||||||||
| Total shareholders’ equity | 6,864 | 6,801 | |||||||||
| Total liabilities and equity | $ | 12,002 | $ | 12,177 | |||||||
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SMITHFIELD FOODS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions and unaudited)
| Three Months Ended | |||||||||||
| March 29, 2026 | March 30, 2025 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 249 | $ | 227 | |||||||
| Adjustments to reconcile net income to net cash flows used in operating activities: | |||||||||||
| Depreciation and amortization | 83 | 83 | |||||||||
| Changes in operating and other assets and liabilities, net | (390) | (541) | |||||||||
| Other | (8) | 64 | |||||||||
| Net cash flows used in operating activities | (65) | (166) | |||||||||
| Cash flows from investing activities: | |||||||||||
| Capital expenditures | (88) | (79) | |||||||||
| Net expenditures from breeding stock transactions | (6) | (7) | |||||||||
| Cash receipts on notes receivable | 14 | 1 | |||||||||
| Net cash flows used in investing activities | (80) | (85) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Net proceeds from issuance of common stock | — | 236 | |||||||||
| Other | (5) | — | |||||||||
| Net cash flows from (used in) financing activities | (5) | 236 | |||||||||
| Effect of foreign exchange rate changes on cash | (4) | — | |||||||||
| Net change in cash, cash equivalents and restricted cash | (154) | (15) | |||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 1,539 | 943 | |||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 1,386 | $ | 928 | |||||||
9
Non-GAAP Financial Measures
Adjusted Net Income Attributable to Smithfield and Adjusted Net Income per Diluted Common Share Attributable to Smithfield
The following table provides a reconciliation of net income attributable to Smithfield to adjusted net income attributable to Smithfield.
| Three Months Ended | Affected income statement account | ||||||||||||||||
| March 29, 2026 | March 30, 2025 | ||||||||||||||||
(in millions, except per share data) | |||||||||||||||||
| Net income attributable to Smithfield | $ | 246 | $ | 224 | |||||||||||||
Incremental costs from destruction of property (1) | 3 | — | Cost of sales | ||||||||||||||
| Plant closures | 2 | 1 | Cost of sales | ||||||||||||||
Reduction in workforce and optimization (2) | 1 | 6 | SG&A | ||||||||||||||
Reduction in workforce and optimization (2) | — | 2 | Cost of sales | ||||||||||||||
| Hog Production Reform | — | 2 | Cost of sales | ||||||||||||||
| Hog Production Reform | — | (1) | Operating gains | ||||||||||||||
Insurance recoveries (3) | — | (6) | Operating gains | ||||||||||||||
Income tax effect of non-GAAP adjustments (4) | (2) | (1) | Income tax expense | ||||||||||||||
| Adjusted net income attributable to Smithfield | $ | 251 | $ | 227 | |||||||||||||
| Net income attributable to Smithfield per diluted common share | $ | 0.62 | $ | 0.57 | |||||||||||||
| Adjusted net income attributable to Smithfield per diluted common share | $ | 0.64 | $ | 0.58 | |||||||||||||
________________
(1)Consists of incremental costs from the destruction of property in connection with a fire at a sow farm in Laverne, Oklahoma.
(2)Consists of severance and restructuring costs associated with workforce reduction and administrative process optimization initiatives. Total severance costs round up to $9 million for the first quarter of 2025.
(3)Consists of a gain recognized in connection with the settlement of an insurance claim associated with property damage.
(4)Represents the tax effects of the non-GAAP adjustments based on a statutory tax rate of 25.7%.
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EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin
The following table provides a reconciliation of net income to EBITDA and adjusted EBITDA.
| Three Months Ended | Twelve Months Ended | Affected Income Statement Account | |||||||||||||||||||||||||||
| March 29, 2026 | March 30, 2025 | March 29, 2026 | December 28, 2025 | ||||||||||||||||||||||||||
(in millions, except percentages) | |||||||||||||||||||||||||||||
| Net income | $ | 249 | $ | 227 | $ | 1,021 | $ | 998 | |||||||||||||||||||||
| Interest expense, net | 8 | 11 | 37 | 41 | |||||||||||||||||||||||||
| Income tax expense | 72 | 72 | 283 | 283 | |||||||||||||||||||||||||
Depreciation and amortization | 83 | 83 | 332 | 332 | |||||||||||||||||||||||||
| EBITDA | $ | 413 | $ | 393 | $ | 1,674 | $ | 1,654 | |||||||||||||||||||||
| Litigation charges | — | — | 73 | 73 | SG&A | ||||||||||||||||||||||||
Reduction in workforce and optimization (1) | 1 | 6 | 4 | 9 | SG&A | ||||||||||||||||||||||||
Reduction in workforce and optimization (1) | — | 2 | — | 2 | Cost of sales | ||||||||||||||||||||||||
Office closures (2) | — | — | 4 | 4 | SG&A | ||||||||||||||||||||||||
Incremental costs from destruction of property (3) | 3 | — | 3 | — | Cost of sales | ||||||||||||||||||||||||
Plant closures (4) | 1 | 1 | 1 | 1 | Cost of sales | ||||||||||||||||||||||||
Hog Production Reform (5) | — | 1 | 2 | 3 | Cost of sales | ||||||||||||||||||||||||
Hog Production Reform (6) | — | (1) | (3) | (4) | Operating gains | ||||||||||||||||||||||||
Employee retention tax credits (7) | — | — | (10) | (10) | Cost of sales | ||||||||||||||||||||||||
Insurance recoveries (8) | — | (6) | (30) | (36) | Operating gains | ||||||||||||||||||||||||
Company-owned life insurance gain (9) | — | — | (17) | (17) | Non-operating gains | ||||||||||||||||||||||||
| Adjusted EBITDA | $ | 417 | $ | 396 | $ | 1,699 | $ | 1,677 | |||||||||||||||||||||
| Net income margin | 6.6 | % | 6.0 | % | 6.6 | % | 6.4 | % | |||||||||||||||||||||
| Adjusted EBITDA margin | 11.0 | % | 10.5 | % | 10.9 | % | 10.8 | % | |||||||||||||||||||||
________________
(1)Consists of severance and restructuring costs associated with workforce reduction and administrative process optimization initiatives. Total severance costs round up to $9 million and $12 million for the first quarter of 2025 and fiscal year 2025, respectively.
(2)Consists of severance costs associated with the planned closure of our satellite offices in Lisle, Illinois and Kansas City, Missouri.
(3)Consists of incremental costs from the destruction of property in connection with a fire at a sow farm in Laverne, Oklahoma.
(4)Excludes accelerated depreciation charges as such amounts are included in the depreciation and amortization line in this table.
(5)Consists of contract termination costs, loss on asset disposals, employee termination benefits and other exit costs associated with our Hog Production Reform initiative. Excludes accelerated depreciation charges as such amounts are included in the depreciation and amortization line in this table.
(6)Fiscal year 2025 and twelve months ended March 29, 2025 includes a $3 million gain on the sale of certain of our hog farms in Missouri.
(7)Represents the recognition of employee retention tax credits received under the Coronavirus Aid, Relief, and Economic Security Act.
(8)Consists of gains recognized in connection with settlements of insurance claims associated with past litigation and property damage.
(9)Consists of a gain recognized in the third quarter of 2025 for a one-time benefit on company-owned life insurance policies.
11
Net Debt and Ratio of Net Debt to Adjusted EBITDA
The following table provides a reconciliation of total debt and finance lease obligations to net debt, the ratio of total debt and finance lease obligations to net income, and the ratio of net debt to adjusted EBITDA.
| Twelve Months Ended | |||||||||||
| March 29, 2026 | December 28, 2025 | ||||||||||
| (in millions, except ratios) | |||||||||||
| Current portion of long-term debt and finance lease obligations | $ | 602 | $ | 3 | |||||||
| Long-term debt and finance lease obligations | 1,401 | 2,000 | |||||||||
| Total debt and finance lease obligations | $ | 2,003 | $ | 2,003 | |||||||
| Cash and cash equivalents | (1,386) | (1,539) | |||||||||
| Net debt | $ | 618 | $ | 464 | |||||||
| Net income | $ | 1,021 | $ | 998 | |||||||
| Adjusted EBITDA | $ | 1,699 | $ | 1,677 | |||||||
| Ratio of total debt and finance lease obligations to net income | 2.0x | 2.0x | |||||||||
| Ratio of net debt to adjusted EBITDA | 0.4x | 0.3x | |||||||||
Adjusted Operating Profit and Adjusted Operating Profit Margin
The following table provides a reconciliation of operating profit to adjusted operating profit.
| Three Months Ended | |||||||||||
| March 29, 2026 | March 30, 2025 | ||||||||||
(in millions, except percentages) | |||||||||||
| Operating profit | $ | 333 | $ | 321 | |||||||
Incremental costs from destruction of property (1) | 3 | — | |||||||||
| Plant closures | 2 | 1 | |||||||||
Reduction in workforce and optimization (2) | 1 | 9 | |||||||||
| Hog Production Reform | — | 1 | |||||||||
Insurance recoveries (3) | — | (6) | |||||||||
| Adjusted operating profit | 339 | 326 | |||||||||
| Operating profit margin | 8.7 | % | 8.5 | % | |||||||
| Adjusted operating profit margin | 8.9 | % | 8.6 | % | |||||||
_______________
(1)Consists of incremental costs from the destruction of property in connection with a fire at a sow farm in Laverne, Oklahoma.
(2)Consists of severance and restructuring costs associated with workforce reduction and administrative process optimization initiatives.
(3)Consists of a gain recognized in connection with the settlement of an insurance claim associated with property damage.
12
FAQ
How did Smithfield Foods (SFD) perform in its fiscal Q1 2026?
Smithfield Foods delivered record fiscal Q1 2026 results, with net sales of $3.8 billion, up 0.8% year over year. Operating profit rose to $333 million, and net income attributable to Smithfield increased to $246 million, reflecting higher profitability and stable demand.
How strong is Smithfield Foods’ balance sheet and liquidity position?
As of March 29, 2026, Smithfield Foods had $3,683 million of available liquidity, including $1,386 million in cash and cash equivalents. The company’s ratio of net debt to adjusted EBITDA stood at a low 0.4x, indicating conservative leverage and meaningful financial flexibility.
What dividend is Smithfield Foods paying in fiscal 2026?
On March 23, 2026, Smithfield’s board declared a quarterly cash dividend of $0.3125 per share, paid April 21, 2026. The company anticipates unchanged quarterly dividends for fiscal 2026, implying an annual dividend rate of $1.25 per share, subject to ongoing board discretion.
What outlook did Smithfield Foods provide for full-year fiscal 2026?
Smithfield reaffirmed its fiscal 2026 outlook, expecting total company sales to grow low‑single‑digits versus 2025. It forecasts total adjusted operating profit of $1,325–$1,475 million, capital expenditures of $350–$450 million, and an effective tax rate between 22.5% and 24.5%.
How did Smithfield’s key segments perform in Q1 2026?
In Q1 2026, Packaged Meats sales were $2,149 million, up 6.2%, with operating profit of $275 million. Fresh Pork and Hog Production had more mixed trends, but consolidated operating profit still increased 3.4%, and the consolidated operating margin improved to 8.7%.